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Minimum or zero LC margin for imports of daily commodities for Ramadan, says Tipu Munshi
Minimum LC margin or LC zero margin has been allowed for importing essential commodities to meet consumption demands for next Ramadan, said Commerce Minister Tipu Munshi on Wednesday.
But because of LC opening other businesses will not suffer, he said.
Later, buyers can pay the dues of the commodities after 6 months as per the rules, he added.
“Dollars are being supplied as per the market situation in terms of imports. However, for remittance payment the amount is not given less,” he said.
The minister said the prices of pulses, oil and sugar, which need to be imported, have increased slightly following increase in the global market.
Read more: E-commerce has a billion-dollar prospect in Bangladesh: Tipu Munshi
But the prices of agricultural products in the country are low and may stay stable for the next two to three months, he added.
He said the prices of imported goods have increased because of higher dollar rates. In line with the dollar rates the prices of those goods are being fixed. That’s why the inflation remained under control compared with other countries, he said.
The minister said that the purchasing power of the people is limited. So, as long as it is necessary, one crore families will be provided with essential commodities at subsidized prices through TCB (Trading Corporation of Bangladesh).
He said that Prime Minister Sheikh Hasina has asked all to be economic to check the cost of imports. About 40 percent electricity consumption of the country has been reduced through special initiatives.
Currently, the difference between the import and export volume has narrowed. Dollars are being saved by reducing imports of luxury goods.
On Tuesday, Bangladesh Bank has allowed 8 essential commodities “usance term” (credit for suppliers/buyers) to meet consumption demands for next Ramadan.
Read more: LCs under scanner to check money laundering: Tipu Munshi
The foreign exchange policy department of Bangladesh Bank on Tuesday issued a circular on 90-day credit facility for suppliers/buyers of these commodities with immediate effect. This facility will remain applicable for the initiation of imports till March 31, 2023.
Traders got the opportunity to import edible oil, chickpeas, pulses, peas, onions, spices, sugar, and dates under 90 days of suppliers'/buyers' credit.
Islami Bank holds Shariah Supervisory Committee meeting
Islami Bank Bangladesh Limited (IBBL) Tuesday organised a meeting of its Shariah Supervisory Committee online.
Professor Mohammad Gias Uddin Talukder, chairman of the committee, presided over the meeting.
Sayeed Ahmed, vice-chairman, Professor Mohammad Abdus Samad, member secretary, of the committee, and Mohammed Monirul Moula, managing director and chief executive officer of Islami Bank, attended the meeting.
Read more: Islami Bank Cumilla, Noakhali hold Shariah compliance webinar
Islami Bank is a joint venture public limited company engaged in commercial banking business based on Islamic Shariah. It is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.
TCB to procure 2.75 crore litres of soybean oil
State-owned Trading Corporation of Bangladesh (TCB) will procure 2.75 crore (27.5 million) litres of Soybean oil from the local suppliers for its Open Market Sale (OMS) propgramme.
Cabinet Committee on Government Purchase (CCGP) in a virtual meeting on Wednesday approved three separate proposals of the Commerce Ministry in this regard.
Finance Minister AHM Mustafa Kamal presided over the meeting while other members of the committee attended it virtually.
The move of the TCB, a subordinate body of the Commerce Ministry, which has been operating as a state-marketing agency to tame the rising price hike of essentials, is part of the government's plan to procure some essential commodities in bulk and sell those through the OMS programme.
As per the Commerce Ministry's proposals, the TCB will procure the entire edible oils through three open tenders.
Read more: Soybean oil: No real effect of reduced tariff
Under the proposals, some 1.10 crore litres of soybean oil will be procured from privately owned City Edible Oil Limited at a cost of Tk 203.32 crore with cost of each litre at Tk 104.48 per litre.
The similar quantity of soybean oil will be procured from Super Oil Refined Limited at 204.44 crore with each litre cost at Tk 185.95 and some 55 lakh litres of soybean oils will be purchased from Shun Shing Edible Oil Ltd at a cost of Tk 101.47 crore with each litre's price at Tk 184.05.
The CCGP also approved some other procurement proposals, including the procurement of 130,000 metric tons of fertiliser.
Of these, the Bangladesh Agriculture Development Corporation (BADC) will import 50,000 MW of Muriate of Potash (MOP) fertiliser from Canadian Commercial Corporation (CCC) at a cost of Tk 344.90 crore with each metric ton cost $655.03.
The Canadian Commercial Corporation will supply another 50,000 MT of MOP at the same price under a separate lot.
State-owned Bangladesh Chemical Industries Corporation (BCIC) will import 30,000 MT of bulk granullar urea from Fertiglobe Distribution Limited, UAE at a cost of Tk 163.75 crore with each metric ton costing Tk $518.33.
The BCIC will also import 10,000 metric tons (MT) of phosphoric acid for its Chattagram TSP Complex Limited from Guizhou Chanhen Chemical Corporation, China (local agent Best Eastern, Dhaka) at a cost of Tk 73 crore.
The CCGP approved a number of proposals of the Housing and Public Works Ministry to raise the cost of civil works under its “Construction of Elevated Expressway from Lalkhan Bazar in Chittagong City to Shah-Amanat Airport” project.
Read more: Bottled soybean oil to cost Tk 14 less per litre from tomorrow
Under the proposals, the cost of the civil construction works No-WD-1 will be increased by Tk 649.02 crore, while cost of the civil works No-WD-1 of “Construction of road from Kalurghat Bridge to Chaktai Canal along the banks of Karnaphuli River” will get higher by Tk 230.05 crore.
The CCGP approved a proposal of the Roads and Highways Department to award a Tk 1,085.34 crore contract to a joint venture of (1) CHSIETC, China; (2) SLGC, China and (3) PDL, Bangladesh to implement the Construction of lot No. DS-06 of the WP-03 package of the “SASEC Dhaka-Sylhet Corridor Road Development” project.
The committee also approved three proposals for the extension costs of the three segments of a project under the South Asia Subregional Economic Cooperation (SASEC).
As per the approvals, the cost of the work of No-WP-10 package of the “Sasec Road Link Project-2: Upgradation of Elenga-Hatikamrul-Rangpur highway to 4-lane” will be increased by Tk 211.03 crore while the cost of the work No - WP-11 package of the same project will be increased by Tk 147.65 crore and cost of the works No-WP-12 package will be enhanced by 142.84 crore.
E-commerce has a billion-dollar prospect in Bangladesh: Tipu Munshi
Speakers at a discussion have said that proper regulatory measures could help boost the e-commerce business in Bangladesh by creating a sustainable image of the sector already wounded by some bad examples of fraud in the recent past.
They say the development of the sector is helping the economy in ways as the sector is set to expand further over the next few years.
Citing some research work, they say the business-to-customer e-commerce market in Bangladesh is expected to grow by 17.61% on an annual basis, aimed at reaching Tk65,966 crore in 2022.
The e-commerce market size in 2021 was about Tk56,870 crore and will be around Tk1.5 lakh crore by 2026, they say adding that the sector is gaining momentum through the country’s registered e-commerce companies, non-registered online platforms and social media-based trading pages where mostly young people are engaged as entrepreneurs.
Read more: Tipu Munshi expects sugar prices to drop in line with import duty
Rice, wheat import: Bangladesh Bank asks banks to keep minimum LC margin
Bangladesh Bank has instructed banks to keep a minimum LC margin (cash advance) for importing rice and wheat, in order to keep their market prices at a tolerable level.
Banking regulation and policy department of Bangladesh Bank issued a circular in this regard – with immediate effect – today and sent it to top executives of all banks.
Read more: Bangladesh Bank allows LCs to import commodities for Ramadan
The circular instructed that banks should kept LC margin at the minimum level, depending on the bank-client relationship.
“Rice, wheat and crops prices are seeing an upward trend, owing to the disruption in the global supply chain caused by the Russia-Ukraine war. As a result, the transport cost of global commodities has gone up, affecting prices in the local market,” the central bank circular added.
Read more: Bangladesh wants to buy sugar, wheat, soybean oil from Brazil
To keep the import and supply channel smooth for rice and wheat, Bangladesh Bank asked banks to keep a minimum LC margin.
The central bank also directed banks to take a minimum cash advance from importers while opening LCs for a number of essential commodities in order to keep their prices at a tolerable level during Ramadan.
The demand for edible oil, lentils, onion, spices and dates usually goes up during Ramadan. As a result, the prices of the items also increase.
Nagad is a Digital Bangladesh success story: Mustafa Jabbar
Digital Bangladesh is a resounding success and Nagad, a mobile financial service of Bangladesh Postal Department, is a vivid example of that success, Posts and Telecommunications Minister Mustafa Jabbar has said.
“Bangladesh is an agriculture-dependent country, but many are now envious of its rapid technological development. One of the major positive outcomes of digitalisation is that we have almost moved towards a cashless society,” the minister told journalists at a programme marking Digital Bangladesh Day-2022 in Daak Bhaban, on Monday.
Read more: FY22: Nagad 3rd highest VAT-paying company in service category, says NBR
“We can now make all kinds of financial transactions, including cash-out and cash-in and shopping, through mobile financial services,” Jabbar said, adding that Nagad is playing a big role in this regard.
Starting off in 2019, Nagad has now become one of the most popular MFS in the country, he noted.
Bangladesh Posts and Telecommunications Division organised a “Digital Postal Service Exhibition” to celebrate Digital Bangladesh Day on Tuesday. It also held a meeting with Posts and Telecommunications Secretary Md Khalilur Rahman in the chair.
Presenting a keynote, Prof Dr Mohammad Mahfuzul Islam, vice-chancellor of Bangabandhu Sheikh Mujibur Rahman Digital University, said, “The most digitalisation has happened in Bangladesh’s financial sector. Mobile financial service providers in particular have revolutionised this field. We can mention the name of Nagad as an example.”
Read more: Nagad wins Mastercard Excellence Award 2022 in two categories
Posts and Telecommunications Secretary Md Khalilur Rahman shared his experience about Digital Bangladesh with everyone and urged all to adapt to the progress.
Dr Md Rafiqul Matin, managing Director of Bangladesh Telecommunications Company Ltd, and Brigadier General Md Nasim Parvej, director general of Bangladesh Telecommunications Regulatory Commission, and Shyam Sunder Sikder, chairman of the Bangladesh Telecommunications Regulatory Commission, also spoke on the occasion.
Md Harunur Rashid, director general of the Postal Department, gave the welcome address.
There were eight stalls at the Postal Department’s exhibition. The visitors were appraised of different digital services, such as electronic money transfer service, postal cash card, online postal life insurance, digital land services, and mobile financial service of Nagad, etc.
Mustafa Jabbar and other guests visited these stalls. Guests came to Nagad’s stall and enquired about cash-out, cash-in and other services. They also learned about how to buy products using the Nagad wallet.
Nagad officials gave the guests an idea of how much money is being saved every year as a result of the distribution of various government allowances through Nagad.
FBCCI seeks dollars from reserves to import commodities for Ramadan
Top business houses in a meeting with Bangladesh Bank (BB) on Monday sought several facilities including foreign exchange support from the forex reserve to import essential commodities and moratorium on loan repayments up to June 2023.
Though Bangladesh exported a record $5 billion worth of goods in November, the traders sought the moratorium, which is similar to deferment, when a lender allows deferred loan repayments for a specific period. Usually, the reason involves some kind of financial hardship, but it was also allowed during the pandemic period.
After the meeting, president of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) Md Jasim Uddin told reporters, “In Ramadan requires many other products besides essential commodities. That's why I asked for ease of import and requested to provide foreign exchange assistance from reserves for opening LC from the reserve if required.”
Read: No forex crisis from Jan 2023, Bangladesh Bank Gov says
Bangladesh Bank has assured to do so, he said.
The BB Executive Director and Spokesperson Mezbaul Haque told UNB that the global context and the current economic situation of the country were discussed in the meeting.
“FBCCI has sought policy benefits. We will consider FBCCI matters. But no decision has been taken till now,” he said.
Jasim also said that production has been disrupted due to the energy and gas crisis. Due to these factors, the factories cannot be run. Raw material cannot be imported due to LC complexity. This has an impact on business.
“If you can't do business, you can't pay the loan instalments. So the differed loan repayment facility should be extended till June next year. So that no one would become a defaulter. If the customer defaults, the bank will also default. So I think it is logical to increase the loan repayment time.”
Read: Despite taka depreciating, banks selling dollars at Tk3-4 extra
The business leader also sought a single rate of dollar resolving the existing several rates of dollar for LC opening and another purpose.
Responding to a question regarding the interest rate cap, the FBCCI president said that if the interest rate is low, investment is high.
“So I don't see the need to lift the interest rate cap now. For this reason, I have requested that the interest rate cap should not be lifted for the next one year,” he added.
Observers appointed for S Alam Group-controlled IBBL and FSIB
Bangladesh Bank (BB) has appointed observers for Islami Bank Bangladesh Limited and First Security Islami Bank.
The central bank took this decision on Monday after reports of loans being approved provided without collateral and required documents.
In this context, the central bank decided to appoint observers in both banks. Both banks are owned by a Chittagong-based S. Alam Group.
Read: Mobile financial service providers can bring remittance directly: Bangladesh Bank
Spokesperson of BB Mazbaul Haque told UNB that as per the central bank’s policy, several instructions have been given to the two banks. Observers will monitor whether these instructions are being followed or not.
Abul Kalam, Director of Forex Reserve and Treasury Management Department, has been made the observer at Islami Bank. And in First Security Islami Bank, the director of the payment service department, Motasim Billah, has been appointed as the observer.
Earlier, the BB had appointed observers to Islami Bank in December 2010 due to fear of loan irregularities and militant financing.
Read: No forex crisis from Jan 2023, Bangladesh Bank Gov says
After this, an officer of the rank of Director (then General Manager) of the central bank started attending various meetings of the Bank. In 2017, the ownership and management of the bank was transferred to a Chittagong-based S. Alam group while Bangladesh Bank was under observation.
Then in March 2020, the observer was removed by the central bank. Then-Governor of the central bank Fazle Kabir approved the removal of the observer from the bank.
Now again the question has arisen of huge loan irregularities, particularly in favour of the controlling group's other units.
People related to the banking sector believe that the recent loan irregularities of Islami Bank are even worse than the irregularities of Hallmark, Basic, and Farmers Bank of Sonali Bank.
SSL Commerz gets licence from BB to process offline retail payment
Bangladesh Bank (BB) has given licence to SSL Commerz Limited to process offline payments, through a point of sale (POS) machine to boost a cashless society.
As a result, the SSL Commerz can set up system for processing card payments at retail locations across the country, said Mezbaul Haque, a BB spokesman.
The retail level payment will be possible through using banks’ cards (VISA Card, Master card etc) where the SSL will play a role of processor, he said.
Read: Nagad offers 16% cashback on payment on Daraz
The central bank provides a licence to SSL as Payment System Operator (White Label Merchant Acquiring) first time in the country to introduce an offline payment system.
There are five institutions that are able to handle online payments.
The BB authorized SSL Commerz to make payments under the brand name 'SSL Commerz' within the country subject to the conditions of the Payment Systems Department.
Using this system people can pay at the retail level even for purchasing from an e-commerce platform.
BSTI certification now mandatory for petroleum jelly, water heater, 8 more products
The Bangladesh Standards and Testing Institution (BSTI) has included 10 more products under its mandatory quality certificate, considering their growing demand.
The products are disposable diapers, face wash, petroleum jelly, flatbread/tortilla, shaving foam or gel, eye care, liquid hair dye, aerosol, shoe polish, and geyser or water heater.
The decision was taken at the 37th BSTI council (highest authority of policy making for the entity) on Sunday with Industries Minister Nurul Majid Mahmud Humayun in the chair.
Currently, the number of products covered by BSTI’s mandatory quality certificate is 229.
Read: Govt working to strengthen BSTI global standard: Minister
The council discussed the ongoing trend of industrialization, an increase in institutional manpower, and skill development training.
The industries minister highlighted the huge potential for the export of halal products in the world market, adding that BSTI should take initiative to determine the quality of halal products and issue quality certificates.
Though Bangladesh is a Muslim-majority country, the contribution of halal products is nominal so far.
According to sources of the commerce ministry, most of the top 10 halal products exporting countries are non-Muslim.
Read: BSTI adds 43 new products under mandatory quality certificate
The top five countries exporting halal meat to the Organization of Islamic Cooperation (OIC) countries are Brazil at $16.2 billion; India at $14.4 billion; the USA at $13.8 billion; Russia at $11.9 billion; and Argentina at $10.2 billion, according to the State of the Global Islamic Economy Report 2020-2021.
The study was produced by the US-based research organization Dinar Standard and supported by Dubai Islamic Economy Development Centre.
State Minister for Industries Kamal Ahmed Mojumder, Industries Secretary Zakia Sultana, and Director General of BSTI Md Abdus Sattar were also members of the BSTI council and attended the meeting.
Read More: ACC to submit report after drive at BSTI